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- After a spectacular 70 percent rise since the recent low of $28,000 in July, Bitcoin (BTC) is currently facing a significant hurdle to break past
- The entire zone around $44,000 is the critical level to watch for a potential breakdown
- Apart from the $44,000 level, the next level of support is around the $40,500 level, which is the previous high
After a spectacular 70 percent rise since the recent low of $28,000 in July, Bitcoin (BTC) is currently facing a significant hurdle to break past. This psychological block is located between $50,000 and $51,000 and can be considered the final barrier before a new all-time high. This correction began when Michael Saylor announced that MicroStrategy had purchased another $177 million in Bitcoin, despite the fact that the company was already one of the largest Bitcoin holders. Since the previous bottom was around $28,000, the market hasn’t witnessed a correction, but one could be on the way. On the daily chart of Bitcoin, an apparent resistance appears to be approaching. The $51,000 barrier is critical for the markets to break through because it was the big S/R flip before the May crisis.
If the markets are unable to break through this level, the entire market is likely to correct. However, given the fact that the altcoin market is showing indications of overheating, this isn’t surprising. In addition, the chart reveals that a potential bearish divergence, which generally precedes a correction, is forming. Given the significance of the $51,000 level, this is likely to be the final stumbling block before a huge push into the all-time high. A short squeeze to $57,000–$59,000 is likely if the $51,000 resistance is broken. Given the recent decline, however, a further corrective move is almost certain. The entire zone around $44,000 is the critical level to watch for a potential breakdown. In the current structure, that level signified a new higher low, and it is the most likely level to support the markets if there is a further and bigger correction.
Apart from the $44,000 level, the next level of support is around the $40,500 level, which is the previous high. Overall, the market should not fall below $37,500, as this is the final breaker before fresh lows are possible. For the time being, a break of the $51,000 resistance level may open the door to greater do. Since its recent low of $1.2 trillion, the total crypto market capitalization has risen dramatically. The market has risen by more than 70% since then, reaching a peak of $2.1 trillion. Before the market can see a breakout to the upside, it must first break over its recent high of $2.1 trillion. In addition, a potential bearish divergence is beginning to appear on the chart, indicating the possibility of a short-term reversal. The following levels of support can be observed on the current chart around $1.75 trillion, which is the recent compression area. Furthermore, it is a recent high.
Such a high could signal the start of a new trading range. If the $1.75 trillion level does not hold, a further decline toward $1.55 trillion is not ruled out. With an apparent breakthrough above $2.1 trillion, however, the entire correction will be discredited. If such a breakthrough occurs, the markets are likely to continue to rise to fresh all-time highs exceeding $2.5 trillion. The Bitcoin two-hour chart reveals a critical level that must be maintained for the market to continue its current trend. Bitcoin’s price will fall back into its prior range if the $48,000 region does not provide support.
The $44,000 region provided enough support in the prior range, and this is most likely going to be the next area of support for the entire correction. Nothing is certain, but if Bitcoin falls below $48,000, a cascade of loss triggers may be triggered, resulting in a possible decline to $44,000. Of course, this could have a negative impact on the altcoin market. Traders and investors should be aware, however, that the market rises in waves. Corrections are to be expected in uptrend cycles, especially the large ones we’ve seen recently, before a new impulsive advance may occur.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
